Ocado sales surge on new M&S deal amid online shopping shift
Ocado added thousands of new customers following the launch of its partnership with Marks & Spencer amid a sustained rise in the number of consumers choosing to shop online.
In the 12 weeks to 4 October, Ocado increased sales by 41.9 per cent as the ecommerce retailer was buoyed by its new deal with M&S that launched at the beginning of September.
It added 22,000 new customers and grew its market share by 0.4 percentage points to 1.8 per cent.
Waitrose, which was Ocado’s supermarket partner for 20 years, was the fastest growing online retailer as loyal customers switched to the grocer’s own home delivery service, which it has rushed to expand. It also saw sales rise in store.
Online sales in the past month soared 76 per cent compared to a year ago, with one in five households ordering groceries via the internet, according to the latest Kantar data.
The proportion of sales made digitally remained unchanged from last month at 12.5 per cent.
Kantar head of retail and consumer insight Fraser McKevitt said: “Ocado has increased the number of shoppers using its service in the latest period – the only retailer to do so – adding 22,000 customers.
“Its new partnership with Marks & Spencer is no doubt part of the appeal. Since it started to sell M&S products on 1 September, two-thirds of Ocado shoppers have ordered Percy Pigs at some point, including an introductory period when the famous sweets were included free.
“Ocado’s share of the market rose this period by 0.4 percentage points to 1.8 per cent.
“Waitrose is keeping pace with its own online offer. Although starting from a relatively low base, it was once again the fastest growing retailer online this month. Waitrose also increased sales through its physical stores, with overall sales increasing by 8.9 per cent.”